PFC, REC, SBI consortium to lend Rs 11,067 cr to NLC power plant in UP

The project is expected to be commissioned by November 2021 and generate about 13969 million units of energy to meet future power requirement of UP.Sarita C Singh | ET Bureau | January 02, 2018, 07:49 IST

NEW DELHI: A consortium of Power Finance Corporation Limited (PFC), Rural Electrification Corporation (REC) and State Bank of India (SBI) will lend Rs 11,067 crore to the Neyveli Lignite Corporation’s 1980 mw coal-based thermal power station in Ghatampur, Uttar Pradesh.

"The consortium participated in e-tendering process for funding of debt of the 3x660 mw power plant executed by Neyveli Uttar Pradesh Power Limited (NUPPL). NUPPL has subsequently awarded LoA to the consortium of PFC, REC and SBI for providing financial assistance of Rs 11,067 crore for the project and the lenders have given their consent,” a statement issued by PFC said.

NUPPL is a joint venture between NLC and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. NLC has an installed capacity of 4301 mw with thermal and wind power plants in Tamil Nadu and Rajasthan.

The Ghatampur power station is being developed at an estimated cost of Rs 17,237.80 crore to be funded in 70:30 debt-equity ratio. Of the total debt of Rs 12,067 crore, Rs 11,067 crore debt is funded by the PFC-led consortium. Balance debt is being provided by Bank of India, the statement said. The project is expected to be commissioned by November 2021 and generate about 13969 million units of energy to meet future power requirement of Uttar Pradesh.

PFC has sanctioned loans worth Rs 7,278 crore in the past to NLC for various existing units of New Neyveli and Tuticorin thermal power projects.